Between January and June of 2009, 12 out of 26 industry segments showed positive growth where the production of transportation products accounted for the strongest growth of all, +29 percent.

14 out of the 26 industry segments reported deterioration during the period. The steel industry was the least successful, -39 percent.

With a corporate tax of only 19 percent, which incidentally is among the lowest across Europe, Poland attracts new businesses. Slowly but surely, Polish laws are adjusted to meet the EU needs. Poland now has double taxation agreements with 80 countries.

Although Poland has not been badly affected by the recession, there are favorable special economic zones.

Economic zones are offered until 2020 and aims to expand and develop each area with new jobs. The goal is to create 200.000 new jobs in all 16 zones and a total investment amounting to 14 billion Euro, much of which is paid from various EU funds.

The benefit of these zones consists of, for example, tax credits which mostly will be given to small-and medium-sized companies, where small businesses is a priority with a higher percentage of tax reduction.

But the establishment of these zones includes requirements, which are as follows.

• A minimum investment of 100.000 Euro must be implemented

• The establishment must be at least 5 years for a larger company and at least 3 years for a smaller company.

• Job opportunities that arise shall last at least 5 years and 3 years.

• Neither the establishment nor investment may commence before it is approved

There are also requirements on which economic activity that is allowed. Among other things, alcohol production, casinos, manufacturing, services surrounding properties are not allowed nor companies in the financial sector.


                                                                                     Cecilia Helland